Funding Status Improves for STRS Ohio’s Health Care Fund
Changes in plan costs and a better than assumed investment return on assets were two key factors that led to a strengthening financial picture for STRS Ohio’s Health Care Fund as of Jan. 1, 2013. At the February meeting of the State Teachers Retirement Board, STRS Ohio’s actuarial consultant, PricewaterhouseCoopers (PwC), presented the results of the annual actuarial valuation of the fund, showing the projected life of the STRS Ohio Health Care Fund now extends to 2060 — an increase of about 21 years from last year’s valuation. Though the report showed improved solvency, the health care program still requires changes in coverage features, program eligibility and/or premium subsidies to attain the three primary goals set by the board.
Costs for the health care program are paid out of the Health Care Fund, which is currently funded through premiums charged to enrollees, 1% of payroll from employer contributions, government reimbursements and investment earnings on these funds. The balance in the fund as of Jan. 1, 2013, was $3.12 billion.
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